Glossary · Reading the business
Succession planning
In short
The process of identifying and developing internal people to fill key positions in the business when current staff leave. For a buyer, it reveals how reliant the business is on the current owner.
What it means in a deal
When buying a business, poor succession planning means you inherit a high risk if key employees depart after the sale. Evaluate if the business has documented processes and trained deputies. This impacts your operational continuity and the business's intrinsic value.
Related terms
Common questions about Succession planning
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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